The stock market’s turning! I’ve never seen a better time to buy UK shares like this one

Fully invested and no cash! I’m so frustrated. But here’s one of the UK shares I’d consider buying now, if I had the funds.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

2023 concept with upwards-facing arrows overlaid on a hand with one finger raised, pointing up

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

sdf

UK shares received a boost this week when better-than-expected inflation figures hit the newswires in the US.

And where the US goes, the UK is sure to follow – at least, that’s my expectation.

But regardless, I think the positive reaction of UK shares to the inflation news demonstrates how desperately stocks want to rise. To me, they look like athletes waiting for the starting gun. And I feel certain that a new, broad-based and enduring bull market will soon gather momentum for UK stocks.

Should you invest £1,000 in Diageo right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo made the list?

See the 6 stocks

Value has been building

Meanwhile, many businesses have been surprising the market with good news about trading. And there’s every reason to believe that value has been building behind UK shares.

And that belief has been with me for several weeks and months. So as opportunities have arisen, I’ve been buying stocks and shares for some time. Now I’m fully invested – and it’s so frustrating.

Before my very eyes, many stock opportunities have been lining up for the grabbing. But I’m powerless to take advantage of them because of the shortage of spare, uninvested funds.

Nevertheless, my watchlist has been growing with candidates for a diversified portfolio. And although I can’t buy them, it’s worth mentioning them so other investors can pile in with their own research and due diligence.

A newly invigorated retailer

For example, retail stalwart Marks & Spencer (LSE: MKS) finally seems to be turning itself around. And the shares have been responding well to improvements in the business.

With the share price around 198p, its doubled since October 2022. And it’s up by just over 50% over the past year.

Created with Highcharts 11.4.3Marks And Spencer Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

However, City analysts’ forward projections for earnings and shareholder dividends are robust. And as recently as 2015, the stock was well above 500p.

The retail scene has been in a state of flux over that period. And competition on the high street has reduced for the company. But that’s not all. Pure online retailers like ASOS and others have been struggling. And the new purple patch for retailers is to have a strong digital presence as well as brick-and-mortar outlets.

Well placed to thrive

M&S is well placed to take advantage of that trend. Its online sales have been growing as well as its physical store sales. And I’d put the company in an elite group with other strong retailers well equipped for the retail trends of today. To me, it sits well alongside names such as NextDunelm and Burberry.

I’m not blinkered to the risks. All retail operations have a particular vulnerability to ups and downs of the wider economy. And shareholders could suffer badly if a protracted downturn arrives in the years ahead.

But M&S chief executive Stuart Machin was upbeat in May. The directors are determined to reshape the business for growth. And just one year into the plan, Machin said operations had already delivered “sustained” trading momentum.

Future progress isn’t certain or guaranteed. But it wouldn’t surprise me to see the share price back above 500p in the coming years if the company can keep its turnaround turning and build sustained business growth upon that base.


Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Kevin Godbold has positions in Burberry Group Plc and Dunelm Group Plc. The Motley Fool UK has recommended Burberry Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Road 2025 to 2032 new year direction concept
Investing Articles

The Ocado share price is up 48% in a month! Is this the start of a stellar recovery?

Harvey Jones says the Ocado share price is the ultimate binary play. The FTSE 250 stock could fly, or it…

Read more »

Two business people sitting at cafe working on new project using laptop. Young businesswoman taking notes and businessman working on laptop computer.
Investing Articles

Growth, buybacks and dividends galore – are NatWest shares the ultimate no-brainer buy?

NatWest shares are flying again, as we saw in its expectation-thrashing results. Harvey Jones looks at whether the FTSE 100…

Read more »

Female Tesco employee holding produce crate
Investing Articles

Is a UK stock market correction coming?

Our writer’s increasingly concerned about the apparent disconnect between the performance of the UK stock market and that of the…

Read more »

Rolls-Royce's Pearl 10X engine series
Investing Articles

The Rolls-Royce share price has soared 66% already this year! Can it really keep going?

Even after a stunning few years, the Rolls-Royce share price has soared by two-thirds already this year. Our writer revisits…

Read more »

A young woman sitting on a couch looking at a book in a quiet library space.
Investing Articles

Spare £5k? Here’s how long it would take to generate a second income of £5k every year!

Christopher Ruane explains the maths behind building a second income from dividend shares, as well as some of the opportunities…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

As the FTSE 100 hits an all-time high, is it too late to get in on the boom?

The FTSE 100 index of leading British shares hit a new all-time high in the past week. Our writer explains…

Read more »

Close-up of British bank notes
Investing Articles

3 shares to consider for long-term passive income

Christopher Ruane thinks investors on the hunt for passive income streams should consider this diverse trio of dividend-paying shares.

Read more »

DIVIDEND YIELD text written on a notebook with chart
Investing Articles

Here are the latest dividend yield forecasts for Legal & General, Aviva, and M&G shares

If someone’s looking for high dividend yields on the London Stock Exchange, these three Footsie financial stocks are definitely worth…

Read more »